How Big Is China’s Coffee Market Demand?

When you walk into a bustling coffee shop in Shanghai or Beijing, it’s easy to assume coffee has always been a big part of Chinese life. But with thousands of years of tea culture behind it, how did coffee—especially fresh-brewed coffee—become such a fast-growing market? And just how much coffee are people in China really drinking?

Quite a lot more than you might think. Since 2008, China’s coffee chain store sales have more than doubled, surpassing 10 billion RMB, and they’re expected to double again by 2017. That growth includes everything from global giants like Starbucks to local chains and even fast-food coffee.

The Rise of Coffee Culture in Tea-Drinking China

Despite China’s deep-rooted tea tradition, Western-style coffee chains have expanded rapidly. According to the Financial Times, coffee chain sales growth has outpaced nearly all other retail sectors in China. Since opening its first store in 1999, Starbucks has positioned itself as a trendy meeting spot, helping reshape local tastes. Its popularity has even increased demand for freshly brewed coffee across the country.

A Diverse and Expanding Market

The market isn’t just growing—it’s diversifying. In recent years, niche Korean-style cafés have proliferated, while independent coffee shops have become common in major cities. Even non-specialist retailers like McDonald’s, KFC, and convenience stores from Japan and Taiwan now sell freshly brewed coffee. McDonald’s alone operates 800 McCafé outlets and holds a 6% market share.

Market Share and Competitive Shifts

Starbucks’ market share in China rose from 12% in 2008 to 31% in 2013, making it the clear leader. Meanwhile, Taiwan’s UBC Coffee (Shangdao) saw its share drop from 33% to 22% in the same period. Costa Coffee aims to double its stores to 700 by 2018, and South Korea’s Mamor Coffee plans to grow from 100 to 200 locations by the end of 2015. Even KFC has begun selling coffee in first-tier city convenience stores.

How Much Coffee Does the Average Chinese Person Drink?

According to market researcher Mintel, the average person in mainland China drinks just 4–5 cups of coffee per year. That’s far below global averages, leaving plenty of room for growth in all segments—fresh brewed, instant, and ready-to-drink. Esther Lau of Mintel notes that the market is set for significant expansion as more Chinese consumers embrace coffee.

What Drives Coffee Demand in China?

Several factors contribute to the boom: urbanization, a growing middle class, exposure to Western lifestyles, and the efforts of major chains to educate consumers. Starbucks, in particular, is credited with creating modern coffee culture in China from the ground up. Analysts agree that competition is increasing, but the market is still far less saturated than in countries like Japan or South Korea.

Frequently Asked Questions

How much has China’s coffee market grown since 2008?

Since 2008, coffee chain sales in China have more than doubled, exceeding 10 billion RMB, and are projected to double again by 2017, according to Euromonitor data.

What is the average coffee consumption per person in China?

The average person in mainland China consumes only about 4 to 5 cups of coffee per year, indicating strong potential for future growth.

Which coffee chains are expanding the most in China?

Starbucks leads with plans to double its stores to over 3,000 by 2019. Costa Coffee aims for 700 stores by 2018, and Mamor Coffee plans to grow from 100 to 200 locations by the end of 2015. Even McDonald’s operates 800 McCafé outlets.

Why has Starbucks been so successful in China?

Starbucks positioned its stores as stylish social spaces, helping to reshape local perceptions of coffee and contributing to increased demand for freshly brewed coffee.

How does tea culture affect coffee consumption in China?

Tea remains deeply rooted in Chinese culture, but younger and urban consumers are increasingly open to coffee, especially in social and work settings.

What types of coffee shops are popular in China?

Besides global chains, niche Korean-style cafés, independent shops, and coffee offerings from fast-food chains and convenience stores are all part of the growing market.

Recommended FrontStreet Beans for Coffee Explorers

If you're exploring China's growing coffee scene, try FrontStreet Coffee's Lintong Mandheling for its bold, herbal profile with notes of spice and caramel under a medium-dark roast—or the 2013 Yunnan Typica, a balanced beginner-friendly coffee with chocolate, nuts, and tea-like sweetness. Both highlight the unique profiles of Asian-origin beans. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.